The sugar industry is set for a major shake-up with Australia's largest miller announcing plans to establish its own selling and marketing company.

The Singaporean-owned Wilmar Sugar operates eight mills in North Queensland, producing more than two million tonnes of raw sugar annually.

In what's been called a 'sad day for the industry' by lobby group Canegrowers, Wilmar has announced plans to sever its marketing relationship with Queensland Sugar Limited (QSL).

"We believe better commercial outcomes can be achieved for our growers and Wilmar through alternative arrangements," says Wilmar's executive general manager for north Queensland, John Pratt.

"We're talking about a partnership-based model that will involve the establishment of a jointly-controlled marketing company that is equally-owned by growers and Wilmar."

The new entity would be charged with marketing the entire production from Wilmar sugar mills.

It's less than one year since Wilmar was forced to abandon an attempt to access a greater share of the production from its mills after its marketing proposal met with fierce resistance from growers, who wanted to stick with QSL.

We're very confident that we can create greater value than the current arrangements.

Wilmar's John Pratt

Mr Pratt says the new offer is fundamentally different and offers growers a "genuine partnership" with Wilmar.

"We're very confident that we can create greater value than the current arrangements," says Mr Pratt.

Growers uncertain as they await detail

As crisis meetings continue, many growers are still coming to terms with the prospect of a vastly different marketing landscape.

But the decision by Wilmar to effectively "go it alone" has angered many who are rusted on to the existing pooling arrangements.

The chairman of Canegrowers Burdekin Phil Marano says growers weren't consulted about the move away from QSL. "Until we see what they have to offer or what their proposal is, we're uncertain who this can be transparent, how we can be assured growers are getting the best price for the cane they supply."

Gary Stockholm is a grower and contract harvester at Giru and will be among the 1500 or so growers meeting with Wilmar to find out exactly what's on the table.

He says the Singaporean giant has "a long way to go" to winning growers' confidence.

"We want a guaranteed price for our sugar, how they're going to market it, how they're going to sell it and make sure we do get paid for it, how're they going to do the advances and all that, like QSL looks after us.

"That's what we grow sugar for, to get paid so we want guarantees that when we put it on the line, we get our share, we get our good price for it."

That's what we grow sugar for, to get paid. So we want guarantees that when we put it on the line, we get our share, we get our good price for it.

Gary Stockholm, Burdekin cane grower and harvester

Industry lobby group 'bitterly disappointed'

With the ink barely dry on a new supply deal allowing all milling groups the right to sell their own economic interest - or about one third - of export sugar, the industry's peak representative bodies are incensed at Wilmar's latest move to take control of 100 per cent of the sugar produced at its eight mills between Ingham and Mackay.

It's more than two million tons of sugar, representing 55 per cent of the sugar sold and marketed through QSL.

We are bitterly disappointed that Wilmar has taken this decision to sever its ties with QSL.

Canegrowers chairman Paul Schembri

There's usually no love lost between the Canegrowers organisation and the Australian Cane Farmers Association, but they're united in the fight to ensure growers retain control of the marketing of their own share of the sugar.

Mr Schembri says the current QSL charter sets out guidelines to maximise returns to both millers and growers.

"We take the view that there could be no better vehicle than what we have now.

"We're at a loss as to why Wilmar would believe growers can capture greater value away from that [the current] model."

Australian Cane Farmers' Association chairman Don Murday says the breakdown occurred as a result of Wilmar and other miller's refusal to recognise the growers' rights to control their two-third, economic share.

"Wilmar have had the opportunity to market their own economic interest, they've had that for a while now and the ink was barely dry on that and here they are trying to go to option C which we basically accommodated them and now they've gone even further to option D which is total destruction.

"If there's to be any criticism of QSL, I believe they've been over accommodating of Wilmar."

"We're talking about something that's going to happen after 30 June 2017, nothing changes with marketing arrangements until at least then.

"We're hopeful that an industry solution can be found to keep all the sugar marketed together, which I think everyone agrees is the best way to do the job."

Mr Beashel remains confident in the future of QSL, saying a number of growers have contacted the organisation to pledge their support.

If there's to be any criticism of QSL, I believe they've been over accommodating of Wilmar.

Australian Cane Farmer Association's Don Murday

Millers unsettled but not surprised

Milling companies, too, have been busy securing their own position in anticipation of the seismic developments happening in the sugar marketing landscape.

Mackay Sugar recently announced it would be one of the first companies to take up the option to sell its own share of the sugar in a new supply agreement with QSL.

The company - which owns three mills in the Mackay region and one at Mossman in Queenland's far north - has partnered with Brazilian sugar giant Coparsucar to set up a marketing arm to sell its own one-third economic interest.

But the remaining two-thirds will continue to be sold through QSL, said Mackay Sugar CEO Quinton Hildebrand.

"The arrangement we have with Coparsucar is a fall back, and remains a fall back but our prize really is to bring some stability to QSL and retain the balance of suppliers to QSL."

He says the security of control of export infrastructure of is another issue concerning those in the sugar industry.

Currently, Queensland's six bulk sugar terminals are owned by Sugar Terminals Limited (STL), a shareholder company made up of millers and growers.

QSL has a lease on the terminals until 2019 - but the possibility of Wilmar getting a majority stake in STL and control of the export terminals has already prompted action from rival millers.

We're going to have to wait and see what the options are going forward.

MSF Sugar CEO Mike Barry

Mackay Sugar says it now owns enough shares in STL to have a "blocking vote" that would stop a potential take-over and protect future access.

"Exporting infrastructure is going to be critical to the long-term marketing of sugar.

"We had made some moves ahead [buying more STL shares] to secure the position of Mackay Sugar and its growers."

Maryborough Sugar Factory, of MSF Sugar, is also testing the waters of the brave new world of sugar marketing.

For some time it's marketed its own sugar, and the Thai-owned conglomerate caused ruction among its far northern growers when it signalled its intention to do more in the future.

The company has mills in Maryborough, Gordonvale, South Johnstone and the Atherton Tableland.

MSF's CEO Mike Barry says it'll wait to see what the new marketing landscape will be after Wilmar pulls out before making its next move.

For the time being, that means continuing to seel some sugar "in house", with the bulk moving through QSL.

"We do for some of the growers who like that, but some of the growers like QSL.

"We're going to have to wait and see what the options are going forward."